Premium Brands (PBH) Q2 2026 Prepared Remarks earnings summary

Executive summary

• Achieved record Q2 2026 revenue of CAD 2.4 billion, adjusted EBITDA of CAD 225 million, and adjusted EPS of CAD 1.53, with strong U.S. growth and successful capital investments and manufacturing transformation.

• U.S.-focused initiatives in Specialty Foods drove sales to CAD 1.2 billion, accounting for 71% of segment sales, and the business development pipeline is at its most robust.

• Completed the sale of a 74% interest in Shaw Bakers, generating a CAD 73.9 million gain, and declared a quarterly dividend of CAD 0.85 per share.

• Positioned to capitalize on consumer trends favoring healthier, nutrient-dense foods, driving growth opportunities.

• Net free cash flow for the quarter was CAD 68 million, marking a major turnaround after four years of negative net free cash flow.

Financial highlights

• Quarterly sales from continuing operations reached a record CAD 2.4 billion, up 26.3% year-over-year, with 7.5% organic sales growth.

• Adjusted EBITDA for the quarter was CAD 225 million, up 29.5% year-over-year, driven by acquisitions, organic growth, and commodity cost recovery.

• Adjusted earnings were CAD 79.6 million (up 37.2%) and adjusted EPS was CAD 1.53 (up 17.7%) year-over-year.

• Net earnings rose to CAD 70.9 million, up 154% year-over-year, supported by gains from asset sales and fees.

• Steady state free cash flow was CAD 116 million for the quarter; net free cash flow was CAD 68 million.

Outlook and guidance

• 2026 revenue guidance revised to CAD 9.1–9.3 billion due to delays in product launches, exit from unprofitable sales, and weaker foodservice demand.

• Adjusted EBITDA guidance for 2026 revised to CAD 840–870 million, with strong growth projected for the second half.

• On track to meet or exceed five-year plan of CAD 10 billion in sales and CAD 1 billion EBITDA by end of 2027.